Expert Reveals Why New Tax Code Changes Could Cause Many Unclaimed Refunds This Year

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receive their refunds.Most Americans struggle to understand the United States tax code, and mistakes stemming from these misunderstandings could mean they pay too much in taxes, receive a lower refund, or get audited by the IRS.The "One Big, Beautiful Bill" made over 100 changes to the tax code that apply to 2025 filings, such as the introduction and expansion of several tax deductions and credits. These changes will likely make it even harder for taxpayers to file their returns this year.Investopedia spoke with Brian Schultz, a certified public accountant and tax partner at Plante Moran, a wealth management firm, about some mistakes taxpayers make when filing their tax returns. This interview has been edited for brevity and clarity.The IRS is working with a staff that is 27% smaller this year. As a result, some taxpayers could face delays this filing season, especially if they make mistakes on their tax return.INVESTOPEDIA: What are some common mistakes taxpayers make when filing that reduce their tax refund or increase the amount of taxes they owe?BRIAN SCHULTZ: Sometimes people aren't fully aware of what deductions are available to them, especially after the tax legislation that passed last July. A lot of those new deductions, you don't need to itemize to take advantage of them. Unfortunately, there's probably going to be some taxpayers leaving money on the table just from a lack of awareness.There will probably be a batch of taxpayers who mistakenly assume that tax credits and deductions are the same as last year. Since the Tax Cuts and Jobs Act was passed in 2017 [increasing the standard deduction] far fewer taxpayers have itemized their taxes. I've got clients that just don't give me the information for [expenses that can be itemized] because they've taken the standard deduction for a while.The 2017 Tax Cuts and Jobs Act temporarily increased the standard deduction, making it less profitable to itemize taxes. The "One Big Beautiful Bill" made the increased standard deduction permanent, but it also increased other deductions that can only be claimed when a taxpayer itemizes their taxes.Especially with changes from the "One Big Beautiful Bill," like the state and local tax cap, it's been $10,000 for so long, and now [taxpayers can deduct up to] $40,000. There will be more taxpayers who should itemize their deductions for 2025, but they won't realize they can, because they haven't been able to under the old laws for several years.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBTC-USD Bitcoin USD 68,651.52 -647.47 (-0.93%)GC=F Gold Apr 26 4,360.70 -214.20 (-4.68%)NQ=F Nasdaq 100 Jun 26 23,986.00 -115.50 (-0.48%)ANNA AleAnna, Inc. 7.07 +3.28 (+86.54%)ETH-USD Ethereum USD 2,067.66 -50.18 (-2.37%)PortfolioSign in to access your portfolioSign inTop gainersPL Planet Labs PBC 33.83 +6.87 (+25.48%)PSNYW Polestar Automotive Holding UK PLC 5.25 +0.88 (+20.14%)YSS York Space Systems, Inc. 21.07 +3.39 (+19.17%)LBTYB Liberty Global Ltd. 14.17 +2.03 (+16.72%)SEDG SolarEdge Technologies, Inc. 51.69 +5.99 (+13.11%)Top losersSMCI Super Micro Computer, Inc. 20.53 -10.26 (-33.32%)SNEX StoneX Group Inc. 69.69 -33.99 (-32.78%)AAOI Applied Optoelectronics, Inc. 87.54 -14.38 (-14.11%)VICR Vicor Corporation 164.54 -25.59 (-13.46%)VST Vistra Corp. 146.02 -21.12 (-12.64%)Most activeCMCSA Comcast Corporation 29.02 +0.04 (+0.14%)SMCI Super Micro Computer, Inc. 20.53 -10.26 (-33.32%)NVDA NVIDIA Corporation 172.93 -5.40 (-3.03%)INTC Intel Corporation 43.87 -2.31 (-5.00%)F Ford Motor Company 11.52 -0.12 (-1.03%)Top economic eventsEarnings eventsMy earnings eventsEarnings events